Zhejiang Wanfeng Auto Wheel (002085) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥3.999 billion, down 2.28% year-over-year; YTD revenue reached ¥11.37 billion, down 1.97% year-over-year, but up 4.23% on a comparable basis excluding divested business.

• Net profit attributable to shareholders in Q3 was ¥165 million, down 24.02% year-over-year; YTD net profit was ¥564 million, up 5.07% year-over-year.

• Automotive lightweight metal parts business saw revenue of ¥9.38 billion YTD, down 3.76% year-over-year due to business divestiture, but sales volume increased.

• General aviation aircraft manufacturing business achieved YTD revenue of ¥1.99 billion, up 7.49% year-over-year, with strong order flow and new product awards.

Financial highlights

• Q3 basic and diluted EPS were ¥0.08, down 27.27% year-over-year; YTD EPS was ¥0.27, up 3.85% year-over-year.

• Q3 net cash flow from operating activities was ¥589 million, down 57.92% year-over-year, mainly due to lower sales, increased use of notes for payments, higher raw material prices, and rising labor costs.

• Gross margin and operating profit details not explicitly stated, but net profit margin improved YTD.

• Non-recurring gains YTD totaled ¥64.53 million, mainly from government subsidies and financial asset disposals.

Outlook and guidance

• Company continues to focus on lightweight automotive parts and innovative general aviation manufacturing, emphasizing R&D, digital upgrades, and cost control.

• Plans to expand applications of magnesium alloy parts in new energy and high-end vehicles, and accelerate development of electric and eVTOL aircraft.